The US Commodity Futures Trading Commission (CFTC) has filed an enforcement action charging defendants Jeremy Munson Globe and GlobeFX Club, Inc (GFC), both of Homestead, Florida., with making false, fictitious or fraudulent statements or omissions to the National Futures Association (NFA) during an NFA investigation and audit. Both Globe, a principal of GFC, and GFC were registered with the CFTC during the period covered by the NFA audit. On October 1, 2009, NFA permanently barred GFC from NFA membership.
The CFTC complaint, filed on March 17, 2011, in the US District Court for the Southern District of Florida, charges that, in February-March 2009, Globe willfully engaged in a scheme to conceal material facts and made false statements or representations to the NFA in response to its investigation and audit. According to the complaint, Globe consistently made false statements to the NFA to conceal the defendants’ activities and prevent the NFA from discovering that GFC was soliciting and accepting pool participant funds and pooling funds in violation of NFA Compliance Rules. The false statements or representations allegedly concerned GFC’s business operating status, the management of pool participants’ accounts, the amount of money managed in the pool on behalf of participants and the number of pool participants, among other things. The CFTC complaint also charges that Globe failed to produce documents that the NFA requested fully and in a timely manner.
The NFA is a Chicago-based futures association, which is registered with the CFTC and serves as an industry self-regulatory organisation. The NFA is responsible, under CFTC oversight, for certain aspects of the regulation of futures entities and their associated persons.
In its continuing litigation against the defendants, the CFTC seeks disgorgement of ill-gotten gains, a civil monetary penalty, permanent trading and registration bans and a permanent injunction against further violations of the federal commodities laws.
